Restricted Microwave Amplifier Technology to China

On October 29, 2012, Fu-Tain Lu was sentenced in the Northern District of California to 15 months in prison, 3 years supervised release $100 special assessment and a $5,000 fine. Previously, on November 17, 2011, Lu pleaded guilty to selling sensitive microwave amplifiers to the People’s Republic of China without the required license. Lu was the owner and founder of Fushine Technology, Inc., corporation formerly located in Cupertino, Calif. Fushine was an exporter of electronic components used in communications, radar and other applications. At the time of the offense, Fushine had a sales representative agreement with Miteq Components, Inc., a New York-based manufacturer of microwave and satellite communications components and subsystems. Lu admitted that, on March 1, 2004, Fushine submitted a purchase order to Miteq for one microwave amplifier and requested that Miteq notify Fushine immediately if an export license was required. Miteq responded that the part was controlled for export to China. Nonetheless, on April 2, 2004, Fushine exported the amplifier to co-defendant Everjet Science and Technology Corporation (Everjet), located in China, without a license from the Department of Commerce. Lu further admitted that the amplifier he shipped was restricted for export to China for reasons of national security. Lu, along with the two corporate defendants, Fushine and Everjet, were first indicted on April 1, 2009. A superseding indictment was returned on February 17, 2010. In addition to the count of conviction, the indictment also charged him with conspiring to violate U.S. export regulations, and lying to federal agents who were investigating that conduct. The superseding indictment quoted from an internal company e-mail in which an Everjet employee told a Fushine employee, “Since these products are a little bit sensitive, in case the maker ask [sic] you where the location of the end user is, please do not mention it is in China.” As part of the plea agreement, Lu also agreed to forfeit 36 additional microwave amplifiers seized on March 24, 2010, but that were not included in the superseding indictment. On October 29, 2012, the government moved to dismiss all charges against co-defendant Fushine Technology. This investigation was conducted by the Department of Commerce (BIS), the FBI, ICE, and U.S. Customs and Border Protection.